Texas Water Resources Institute Texas A&M University

TR-281 April 2005

Economic and Conservation Evaluation of Capital Renovation Projects: Hidalgo County Irrigation District No. 2 (San Juan) – Rehabilitation of Alamo Main Canal – Final

M. Edward Rister Ronald D. Lacewell Allen W. Sturdivant

Texas Water Resources Institute Texas A&M University

TR-281 April 2005

Economic and Conservation Evaluation of Capital Renovation Projects: Hidalgo County Irrigation District No. 2 (San Juan) – Rehabilitation of Alamo Main Canal - Final

Authors’ Note: The original Preliminary TR-276 report was published in October 2004, with that economic and conservation analysis subsequently reviewed by the Texas Water Development Board (TWDB) and the U.S. Bureau of Reclamation (USBR) during October, 2004 - March, 2005. The revision process did result in slightly-revised construction-cost values. Thus, the reported results between the original Preliminary and this revised Final report do vary some. This and the aforementioned TR-276 report were developed to assist Hidalgo County Irrigation District No. 2 (HCID #2) in their submitting of project materials to the USBR. Distribution of this report will initially be limited to the HCID #2 and their consulting engineer, the USBR, and the TWDB. Only after the USBR has scored and finalized the next grouping of irrigation districts’ proposed capital-rehabilitation projects will the final results for HCID #2s project be made available to other stakeholders and the public. This is anticipated to occur sometime in mid 2005.

This research was supported by the “Rio Grande Basin Initiative” which is administered by the Texas Water Resources Institute of the Texas A&M University System with funds provided by the Cooperative State Research, Education, and Extension Service, U.S. Department of Agriculture, under Agreement Numbers 2001-45049-01149 and 2003-34461-13278.

Preface1 Recognizing the seriousness of the water crisis in South Texas, the U.S. Congress enacted Public Law 106-576, entitled “The Lower Rio Grande Valley Water Resources Conservation and Improvement Act of 2000 (Act).” In that Act, the U.S. Congress authorized water conservation projects for irrigation districts relying on the Rio Grande for supply of agricultural irrigation, and municipal and industrial water. Several phases of project planning, evaluation, and financing are necessary, however, before these projects may be constructed. The U. S. Bureau of Reclamation (USBR) is the agency tasked with administering the Act and it has issued a set of guidelines for preparing and reviewing such proposed capital renovation projects. Based on language in the Act, the “Guidelines for Preparing and Reviewing Proposals for Water Conservation and Improvement Projects Under Public Law 106-576 (Guidelines)" require three economic measures as part of the USBRs evaluation of proposed projects: < <